ValueXpress obtained a $3.5-million CMBS conduit loan secured by Omni Self-Storage, a 430-unit self-storage facility located in Fayetteville, North Carolina. The new CMBS conduit loan refinanced $1.5 million of existing debt, providing $2 million in cash-out proceeds to the borrower. The proceeds will allow the borrower to expand the facility on adjacent vacant land.
The property is located on Eastern Blvd, near downtown Fayetteville and approximately 10 miles from Fort Bragg. Fort Bragg is one of the largest military installations in the world, with 54,000 military personnel. As a result, Omni Self-Storage caters to both military and civilian customers.
Of the units, 50% are climate controlled. In addition, the borrower operates a moving and storage business, Omni Moving and Storage, in a warehouse building on site. A lease between the moving and storage business and the borrowing entity was structured to allow the rental value of the moving and storage building to be included in the underwriting. Furthermore, the loan amount was increased during underwriting to cover some deferred maintenance that was discovered.
The transaction was orchestrated by Gary Unkel, Senior Loan Originator at ValueXpress. “It was more than a pleasure working with you,” commented Dan Kinlaw, the property owner. “It was a nice surprise that you were able to increase the loan amount to cover some unforeseen expenses. I really appreciated that.”
For a loan quote on your next self-storage transaction, contact Gary Unkel at 212-883-6475 or via email at gunkel@valuexpress.com.